With respect to services provided, it is customary to recognise revenue when the:
A) customer requests the service.
B) supplier agrees to provide the service.
C) service is provided.
D) service is paid for.

Question

Quizplus · Accepted Answer

Revenue should be recognized when the service has been provided. This means that the service has been completed and the customer can benefit from it. The other options do not necessarily indicate that the service has been fully provided and therefore revenue recognition should not occur at those points.

With Respect to Services Provided, It Is Customary to Recognise